A Coquitlam man is set to pay a hefty fine to an independent agency that oversees capital markets in B.C.
Matthew Cameron is ordered to hand over $40,000 to the BC Securities Commission (BCSC) after the regulation watchdog determined he, and the Surrey firm he was working for, was part of an investment misconduct with another organization.
He is one of three men set to pay a combined $210,000 from the settlement agreement.
The BCSC explains, in 2011, that Chartwell Asset Management loaned $5 million USD to Health Capital Receivables Funding Special Purpose Corporation I and managed the money — known as a Magna High Income Fund.
However, in 2017, the BCSC says the company suspended client redemptions of the income fund after Health Capital defaulted on the conditions of the loan.
"Health Capital stopped making timely interest payments and stopped providing reporting documents," the agency says in a release issued today (March 7).
"Chartwell admitted that it did not have sufficient information about Health Capital to support its calculation of the value of the fund, nor did it re-evaluate the fund’s valuation in light of multiple risk indicators."
"By doing so, Chartwell failed in its duty as an investment fund manager to exercise the degree of care, diligence and skill that a reasonably prudent person would exercise in the circumstances."
The BCSC says Cameron was the vice president, chief compliance officer and an advising representative with Chartwell and does not have a previous history with the provincial agency.
He has also received a four-year prohibition from becoming or acting as a chief compliance officer and will be subject to supervision for the next three years during future periods registered under the Securities Act.
Two other men — Gregory Cameron of Surrey and Wah Bo Chew of Burnaby — are ordered to pay $100,000 and $70,000 respectively to complete the settlement, which was reached before hearings began with the BCSC.
Gregory Cameron was Chartwell president, CEO and a director, while Chew was a director and advising representative.
"Chartwell is also permanently prohibited from purchasing any securities, becoming or acting as a registrant or promoter and engaging in promotional activities."
For more information on the settlement, you can visit the BCSC's website.